MS Watch is covering the PDC as we speak, here are some highlights; Group VP Jim Allchin is up [PDC]. He's providing info on the Avalon/Indigo/WinFS code that will make Longhorn tick.

More buzzwords to remember:

WinFX: the successor to Win32

ClickOnce: the "equivalent of Xcopy to a machine" that will make application install/deinstall a snap.

SuperFetch: a feature designed to improve and speed up the current paging system

XAML: a declarative markup language that will separate code and content in the next generation of Windows applications

MSBuild: a unified build engine for Windows, the Windows software development kit and Visual Studio.

Aero: Transparent Windows, Sidebar, Built-in Presence and More

Windows User Experience product unit manager Hillel Cooperman is putting Longhorn through its paces. He's showing off the "Aero" interface right now and highlighting the "Sidebar," which has been part of some of the early alpha builds that have leaked in recent months. The Sidebar includes built-in buddy lists, slide shows, and even an RSS-feed capability.